Cadence Pharmaceuticals, (FRA:QEW) Inventory-to-Revenue : 0.21 (As of Dec. 2013)

View and export this data going back to . Start your Free Trial

What is Cadence Pharmaceuticals, Inventory-to-Revenue?

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Cadence Pharmaceuticals,'s Average Total Inventories for the quarter that ended in Dec. 2013 was €5.44 Mil. Cadence Pharmaceuticals,'s Revenue for the three months ended in Dec. 2013 was €25.78 Mil. Cadence Pharmaceuticals,'s Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.21.

Cadence Pharmaceuticals,'s Inventory-to-Revenue for the quarter that ended in Dec. 2013 declined from Sep. 2013 (0.23) to Sep. 2013 (0.21)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cadence Pharmaceuticals,'s Days Inventory for the three months ended in Dec. 2013 was 58.83.

Inventory Turnover measures how fast the company turns over its inventory within a year. Cadence Pharmaceuticals,'s Inventory Turnover for the quarter that ended in Dec. 2013 was 1.55.

Cadence Pharmaceuticals, Inventory-to-Revenue Historical Data

The historical data trend for Cadence Pharmaceuticals,'s Inventory-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cadence Pharmaceuticals, Inventory-to-Revenue Chart

Cadence Pharmaceuticals, Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory-to-Revenue

Get a 7-Day Free Trial

0.06

0.08

0.07

Cadence Pharmaceuticals, Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
Inventory-to-Revenue	Get a 7-Day Free Trial															0.33	0.27	0.27	0.23	0.21

Competitive Comparison of Cadence Pharmaceuticals,'s Inventory-to-Revenue

For the Biotechnology subindustry, Cadence Pharmaceuticals,'s Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cadence Pharmaceuticals,'s Inventory-to-Revenue Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Cadence Pharmaceuticals,'s Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Cadence Pharmaceuticals,'s Inventory-to-Revenue falls into.

Cadence Pharmaceuticals, Inventory-to-Revenue Calculation

Cadence Pharmaceuticals,'s Inventory-to-Revenue for the fiscal year that ended in Dec. 2013 is calculated as

	Inventory-to-Revenue (A: Dec. 2013 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2012 )	+	Total Inventories (A: Dec. 2013 ))	/	count )	/	Revenue (A: Dec. 2013 )
=	( (4.951	+	6.312)	/	2 )	/	82.166
=	5.6315					/	82.166
=	0.07

Cadence Pharmaceuticals,'s Inventory-to-Revenue for the quarter that ended in Dec. 2013 is calculated as

	Inventory-to-Revenue (Q: Dec. 2013 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2013 )	+	Total Inventories (Q: Dec. 2013 ))	/	count )	/	Revenue (Q: Dec. 2013 )
=	( (4.558	+	6.312)	/	2 )	/	25.778
=	5.435					/	25.778
=	0.21

Cadence Pharmaceuticals, (FRA:QEW) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Cadence Pharmaceuticals,'s Days Inventory for the three months ended in Dec. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2013 )	/	Cost of Goods Sold (Q: Dec. 2013 )	*	Days in Period
	=	5.435	/	8.43	*	365 / 4
	=	58.83

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Cadence Pharmaceuticals,'s Inventory Turnover for the quarter that ended in Dec. 2013 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2013 )	/	Average Total Inventories (Q: Dec. 2013 )
	=	8.43	/	5.435
	=	1.55

Cadence Pharmaceuticals, Inventory-to-Revenue Related Terms

Thank you for viewing the detailed overview of Cadence Pharmaceuticals,'s Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.

Cadence Pharmaceuticals, (FRA:QEW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Cadence Pharmaceuticals, Inc. (FRA:QEW) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.cadencepharm.com

Cadence Pharmaceuticals, Inc. is a biopharmaceutical company focused on in-licensing, developing and commercializing product candidates mainly for use in the hospital setting. The Company's main activities are conducting research and development activities as well as conducting clinical trials. The company has in-licensed rights to products: Acetavance, an intravenous formulation of acetaminophen, and Omigard, an omiganan pentahydrochloride 1% aqueous gel. It in-licensed the exclusive United States, or U.S., and Canadian rights to Acetavance from Bristol-Myers Squibb Company, or BMS, which markets this product candidate in Europe and other markets for the treatment of acute pain and fever under the brand name Perfalgan. The Company is developing Acetavance, a proprietary intravenous formulation of acetaminophen, for the U.S. market for the treatment of acute pain and fever in adults and children. In its oral form, acetaminophen is the most widely used drug for the treatment of pain and fever in the U.S. The Company's licensor, BMS, currently markets this proprietary intravenous formulation of acetaminophen for the treatment of acute pain and fever in Europe and several other markets outside the U.S, where it is known as paracetamol and is marketed under the brand name Perfalgan.

Cadence Pharmaceuticals, (FRA:QEW) Headlines

No Headlines